The Asian Development Bank (ADB) has approved $42 million in project readiness financing (PRF) to develop transport connectivity and promote multimodal transport in Bangladesh.
The total budget for the Transport Connectivity Improvement Preparatory Facility is $57.2 million.
Of the total amount, the Bangladesh government will provide $15.2 million, according to an ADB press release published Friday.
The PRF will assist in project preparation of road and rail connectivity of ports, land ports, and border crossing points; road and rail connectivity of intermodal transshipment facilities including inland container depots and inland container terminals; and strengthening corridors and sector-wide improvements including safety, traffic management and maintenance.
"Bangladesh's transport network is a critical infrastructure supporting the country's economic activities and promoting international trade," said ADB Transport Specialist Kaoru Kasahara.
He added that the facility will help meet the rapidly growing transport demand by financing feasibility studies, detailed designs, and other preparatory works to support the government in preparation of road and railway projects.
Due to steady economic growth and increasing population, transport demand in Bangladesh has been expanding.
However, the government has been substantially investing in all subsectors to strengthen the country's transport network, says the press release.